IRS Released Information Regarding Processing Issues Affecting First Time Homebuyer Credit

IRS on March 23 released information regarding processing issues affecting a “small percentage” of tax returns involving repayment of the First Time Homebuyer Credit (FTHB), most of which involve 2008 home purchases. Most of these returns are processing normally, the agency said. However, it “recognizes the hardship caused by delayed refunds, and it has assigned additional staff and resources to address the issues promptly,” IRS added. According to IRS, there are three sources for the processing problems: married filing jointly taxpayers who received the FTHB credit on a 2008 purchase; taxpayers who received the FTHB credit and are now reporting the sale or disposition of their home; and taxpayers who received the FTHB credit and are attempting to pay back more than the amount required (typically $500). Additional information can be found at http://www.irs.gov/newsroom/article/0,,id=237695,00.html.